Homebuyers Tax Credit Extended to June 2010

Uncle Sam is giving more homebuyers a tax break. An $8,000 tax credit for first-time homebuyers, which was due to end on November 30, has been extended by the federal government until June 2010. The IRS estimated than 1.4 million people have taken advantage of the tax credit thus far and the extension will undoubtedly attract more first-timers to buy homes.

In more good news, the tax credit also extends it to those who already own a home. A new $6,500 tax credit is being made to attract repeat homebuyers to trade up and purchase their next home.

All real estate transactions must close by June 30, 2010 in order to reap the tax credit. In addition, buyers must meet certain income limits. Single buyers who make up to $125,000 will qualify, as do married couples with a combined income of $225,000 or less.

Click here to visit a section of the IRS website that provides additional information about the tax credit and specific tax forms that a homebuyer will need to get the tax credit.